Lagos State Governor Ambode, while responding to the fall in Oil prices, during his keynote address at the 3rd Annual London School of Economics (LSE) Africa Summit, held in London, U.K, and streamed live on Saturday, April 23, 2016, stated that Africa’s biggest economies which hitherto enjoyed improved social and economic performance, for more than a decade, are now confronted with significant headwinds following the adverse shock in commodity prices. This, he said is apparent in the growth decelerate coming in at 3.5% in 2015, down from 4.6% in 2014, the weakest pace since 2009.
According to the governor, the drop in oil prices revealed that the 'one dimensional model' of Nigeria's political economy, has outlived its shelf life, as defined in the on-going re-direction challenge to change the architecture of Nigeria's political economy. "The high price of oil created a distorted economic structure, where it was more valuable to capture value from the oil stream than create value. The returns to oil went to a few, with a tiny trickle down system to keep the social peace, but the reality is we squandered the oil wealth and arrived to 2015 with poor infrastructure, a poor education system, and poor level of social development". He stated.
Promulgating his confidence in the present administration, governor Ambode said despite the present tough times and tough choices facing the country with this new reality, the low oil prices is a tipping point for positive change. This downturn he specified as: "an avenue for every Nigerian, the leaders and citizens inclusive, to address the sources of vulnerability in order to achieve inclusive growth and sustainable development. The tone of enhance Governance with focus on transparency and accountability, has been established under the leadership of President Muhammadu Buhari." - Ambode stated.
According to the governor, the drop in oil prices revealed that the 'one dimensional model' of Nigeria's political economy, has outlived its shelf life, as defined in the on-going re-direction challenge to change the architecture of Nigeria's political economy. "The high price of oil created a distorted economic structure, where it was more valuable to capture value from the oil stream than create value. The returns to oil went to a few, with a tiny trickle down system to keep the social peace, but the reality is we squandered the oil wealth and arrived to 2015 with poor infrastructure, a poor education system, and poor level of social development". He stated.
Promulgating his confidence in the present administration, governor Ambode said despite the present tough times and tough choices facing the country with this new reality, the low oil prices is a tipping point for positive change. This downturn he specified as: "an avenue for every Nigerian, the leaders and citizens inclusive, to address the sources of vulnerability in order to achieve inclusive growth and sustainable development. The tone of enhance Governance with focus on transparency and accountability, has been established under the leadership of President Muhammadu Buhari." - Ambode stated.
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